BUSI2025 Lecture Notes - Lecture 3: Global Health, Income Distribution, Longrun
Document Summary
Managers study economic environments to estimate how market trends and government policy influence the performance of their companies. A (cid:272)ou(cid:374)try"s e(cid:272)o(cid:374)o(cid:373)i(cid:272) poli(cid:272)ies are a leadi(cid:374)g i(cid:374)di(cid:272)ator of go(cid:448)t"s goals a(cid:374)d its pla(cid:374)(cid:374)ed use of economic tools and market reforms. Economic development directly impacts citizens, managers, companies, poicymakers and institutions. Level indicates: current market potential, current market conditions. Rate of change indicates: future market potential, future market conditions, possible first-mover advantages the advantages of being the first entrant to a new market. Activity of private firms: short term: firms mobilise productive resources, long term: firms generate technological change (products and services, processes, strategies, organisations, management practices) Firms need conducive business environment to develop innovations and deploy entrepreneurship: market economy, price mechanism, strong property rights. Key government role: to create conducive preconditions, although preventing excesses of market economy. Economic, political and legal systems: attractiveness of a country as market/production site. U(cid:272)(cid:272)ess is li(cid:374)ked to ho(cid:449) (cid:449)ell the go(cid:448)er(cid:374)(cid:373)e(cid:374)t deals (cid:449)ith: .
